Correlation Between Bangkok Dusit and Cpt Drives
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Cpt Drives at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bangkok Dusit and Cpt Drives into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Cpt Drives Power, you can compare the effects of market volatilities on Bangkok Dusit and Cpt Drives and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bangkok Dusit with a short position of Cpt Drives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Cpt Drives.
Diversification Opportunities for Bangkok Dusit and Cpt Drives
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangkok and Cpt is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Cpt Drives Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cpt Drives Power and Bangkok Dusit is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bangkok Dusit Medical are associated (or correlated) with Cpt Drives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cpt Drives Power has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Cpt Drives go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Cpt Drives
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Cpt Drives. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 2.17 times less risky than Cpt Drives. The stock trades about -0.13 of its potential returns per unit of risk. The Cpt Drives Power is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Cpt Drives Power on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Cpt Drives Power or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Cpt Drives Power
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Cpt Drives Power |
Bangkok Dusit and Cpt Drives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Cpt Drives
The main advantage of trading using opposite Bangkok Dusit and Cpt Drives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Cpt Drives can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cpt Drives will offset losses from the drop in Cpt Drives' long position.| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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